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Answered

Suppose that you have P80,000. You decided to deposit it on a bank
and will not withdraw from it for 10 years. A bank offers two types of interest
accounts. The first account offers 6% simple interest. The second account
offers 6% interest compounded semi-annually. Which account will you choose
if you want your money to earn more? Why?​

Sagot :

ANNIXMHILESIN

Answer:

I will choose the second one because it offers 6% interest, plus it will be compounded semi-annually. If I'm going to compare it to the first one, after 10 years I will only received 6% of the 80,000. However, if I'm going to choose the second one, the money that I will receive after 10 years will be doubled compared to the amount on the first account.

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